News

1/26/2009

Mercedes Homes Files for Reorganization

Melbourne, FL – Tuesday, January 27, 2009 – Mercedes Homes, Inc., a Florida-based homebuilder with additional operations in Texas, North Carolina and South Carolina, has announced that, together with certain of its subsidiaries, filed Chapter 11 petitions to reorganize before the United States Bankruptcy Court in West Palm Beach, Florida. As is the case throughout the nation and in the entire residential construction industry, the company has suffered from the prolonged weakness in the economies of the markets where it does business. In addition, the company has also suffered liquidity strains due, in part, to the takeover of one of its lenders in its lending syndicate by the FDIC. Mercedes Homes intends to operate in the normal course of business during this financial reorganization. Mercedes Homes expects to move quickly through the reorganization process and to emerge from its reorganization proceedings better capitalized and financially stronger. Mercedes Homes has been a national leader in the residential home building industry for over 25 years. The company employs approximately 400 people who sell, and construct, homes of distinctive quality in over 80 communities in Florida, Texas and North and South Carolina.